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Posted on: May 2, 2019

NOTICE OF PUBLIC HEARING ON PROPOSED CITY OF FLAGSTAFF TAX CODE CHANGES

NOTICE OF PUBLIC HEARING ON

PROPOSED CITY OF FLAGSTAFF TAX CODE CHANGES

(POSSIBLE INCREASE IN THE USE TAX RATE)

The City of Flagstaff hereby gives notice pursuant to A.R.S. § 9-499.15 of a proposed increase in the use tax rate from 1% to 2.281%, for the purpose of raising revenue to help pay for expenses of the City, including its unfunded liability for police and fire fighter pensions.

The Flagstaff voters have already approved a base local transaction privilege tax rate of 2.281% effective July 1, 2019. The majority of the revenues generated by this tax are dedicated for public transportation, roads and trails related activities.

The City proposes to amend the City Tax Code to impose a tax rate of 2.281% on storage or use in the City of tangible personal property for which an equivalent tax has not been paid (“use tax”). A use tax is similar to the local transaction privilege tax, and is classified as “an affiliated excise tax.” A use tax is not paid in any circumstance when an equivalent local transaction privilege tax has been paid. In other words, there is no “double taxation.”

A first reading of an ordinance regarding the proposed use tax rate increase may occur at the public meeting of Tuesday, June 18, 2019 at 6:00 p.m. in the City Council Chambers.

The City Council will conduct a public hearing and consider approval of the proposed use tax rate increase at the following date and time:

Tuesday, July 2, 2019 at 6:00 p.m.

City Council Chambers

211 W. Aspen Avenue

Flagstaff, Arizona 86001

A second reading and adoption of an ordinance to amend the City Tax Code to enact the use tax rate increase may occur following the public hearing.

A schedule of the proposed increased use tax that includes the amount of the tax and a written report or data that supports the increased tax is attached, and a copy has been placed on file with the City Clerk.

Please contact Sandy Corder, Revenue Director, (928) 213-2252 if you have any questions. The City Tax Code is part of the City Code and can be found on the City website, www.flagstaffaz.gov. The Arizona Department of Revenue is responsible for administration of local tax collection, and maintains information about both state and local taxes on its website, www.azdor.gov.

Submitted by: Sandy Corder, Revenue Director

This notice is posted on the homepage of the City website on Thursday May 2, 2019. This notice has been distributed to other social media accounts and electronic communication tools of the City at least 60 days prior to July 2, 2019.

Posted and distributed by: Jessica Drum, Communications Manager (928) 213-2061.

Attachments: A written report or data to support the increased tax


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